Where shipment routes change, or vessels are diverted to alternate ports, exporters may need amendments in shipping documents and related banking instruments such as LCs, he said. At the same time, exporters may lose the benefit under the Interest Equalisation Scheme, which provides a 2.75 per cent interest subvention for eligible exporters. “The combined impact could raise the effective cost of export credit by about 5.75 per cent to 6.75 per cent, imposing a significant financial burden on exporters already affected by logistics disruptions. Exporters who rely on Export Credit of banks may face extended credit cycles because payment is linked to document acceptance or cargo arrival. “As a result, working capital remains locked for a longer duration, increasing the need for added finance and financing costs.

Source: The Hindu March 11, 2026 00:33 UTC